Joby Aviation announced that it is upsizing its public offering, raising $1.2 billion in the process as it looks to fund its certification and manufacturing efforts, as well as commercial operations.
- Joby Aviation announced the pricing of concurrent public offerings, totaling about $1.2 billion.
- Morgan Stanley also has a delta offering of 5,286,343 shares to raise $60 million, while underwriters also have an option to purchase additional notes worth $90 million.
- Joby’s public offering of shares at a price of $11.35 is at a discount of a little over 15% compared to the stock’s closing price of $13.37 on Wednesday.
Joby Aviation Inc. (JOBY) shares declined more than 11% in Thursday’s pre-market trade after the company announced an upsized public offering as part of its latest capital raise.
Joby Aviation announced the pricing of concurrent public offerings totaling about $1.2 billion. The company will issue 0.75% convertible senior notes due 2032 to raise an aggregate amount of $600 million and 52,863,437 shares of its common stock at a public offering price of $11.35 to raise $600 million.
Furthermore, Morgan Stanley also has a delta offering of 5,286,343 shares to raise $60 million. Underwriters also have an option to purchase additional notes worth $90 million, the company said.
Joby’s public offering of shares at a price of $11.35 is at a discount of a little over 15% compared to the stock’s closing price of $13.37 on Wednesday.
Joby had previously announced a $1 billion capital raise, following which the company’s shares plunged nearly 11% during the after-market hours trade on Wednesday.
Why Is Joby Raising Funds?
Joby stated that it intends to use $55 million from the capital raise proceeds to fund the cost of entering into capped call transactions.
The company intends to use the remaining funds raised, after deducting the cost of the capital raise, to fund its certification and manufacturing efforts, prepare for commercial operations, and support general working capital and other general corporate purposes.
What Does Joby Do?
Joby makes electric vertical takeoff and landing aircraft, or eVTOLs – these vehicles, dubbed air taxis, take off and land vertically like helicopters.
Joby describes its aircraft experience as akin to a sports utility vehicle (SUV) rather than an airplane, which is where its “air taxi” moniker comes from.
The company says its aircraft have the capacity for a single pilot and four passengers, with a top speed of 200 miles per hour.
How Stocktwits Users Reacted
Retail sentiment on Stocktwits around Joby Aviation was in the ‘bullish’ territory, with message volumes at ‘high’ levels at the time of writing.
One bullish user suggested looking at the bigger picture rather than focusing on the stock declines.
However, one bearish user stated that Joby stock would hover above $30 if the company did not undertake back-to-back offerings.
JOBY stock is up 1% year-to-date and 60% over the past 12 months.
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